Emkay’s assessment of the Indian hospitality sector is as follows:
Indian Hotels: They recommend initiating a “buy” with a target price of Rs. 485, considering the current market price of Rs. 417.05.
Lemon Tree: Emkay suggests initiating a “buy” with a target price of Rs. 141, considering the current market price of Rs. 118.
Chalet: Emkay advises holding the stock with a target price of Rs. 625, while the current market price stands at Rs. 591.20.
Emkay anticipates robust demand in the hospitality sector due to limited supply, leading to sustained high occupancy rates. They also expect that the addition of rooms and margin expansion will contribute to reducing debt and improving returns. Furthermore, they note that the upswing in the Indian hospitality industry typically extends for 5-6 years.
Regarding the performance of hospitality company shares on Thursday at the NSE:
Indian Hotels: The stock closed at Rs. 417.05, reflecting a 2.58% increase.
Lemon Tree Hotels: The stock closed at Rs. 118, showing a 0.98% increase.
Chalet Hotels: The stock closed at Rs. 591.20, marking a 2.35% increase.
EIH Associated Hotels: The stock closed at Rs. 483.55, with a 0.95% increase.